Tea in India

Countries Description

India

Populated by more than 1 billion persons with a population growth of 1.4% (2011, World Bank), India is becoming a great economic power. Nonetheless, the Indian population is deeply rooted in its tradition. The country’s capital is New Delhi; it has a size of 3,287,263 km² and the official languages are English and Hindi. India is a federal state, which includes 28 states established mainly on linguistic bases, and seven territories created for political or historical. It is a parliamentary democracy, based on the British model. The Constitution of 26 January 1950 proclaimed the socialist and secular character of the state. The Parliament consists of two chambers: the House of states (Rajya Sabha, the upper house) and the House of the People (Lok Sabha, the lower house). The leader of the majority party in the Lok Sabha is appointed Prime Minister. The President of the Republic has a largely symbolic role.

The currency used in India is the Rupee ( 1 Rupee = 0.0017 US dollar) .

Economic Facts

• GDP: $ 1,842 billion (2,55% of the world GDP, ranking 10th between Canada and Italia; 2012, World Bank)

• GDP per habitant: $1,530 (2012, World Bank0

• Growth Rate: 3,8% (2012, OCDE)

• Principal partners : China, US, UAE, Saudi Arabia ,Germany, Singapore

United States of America

The federal republic of the United States of America is composed of 50 states with a population estimated at over 300 million. English is the official language. The U.S. has a capitalist system. It has one of the largest and richest consumer markets and offers foreign companies a market for virtually all products and services.

Today, the United States is the world’s largest trading nation behind China, being among the top two exporting nations in the world while at the same time leading the world in imports. The country is committed to global free trade and has had a major role in the formation of global trade agencies such as General Agreement on Tariffs and Trade (GATT). The United States is also involved in several Free Trade Agreements (FTA) including North American FTA (NAFTA), US-Israel FTA, US-Columbia FTA, US-Panama Trade Promotion Agreement and many others.

Product description

The tea plant is derived from the Camellia Sinensis family and comes from China. China was also the first country to use the leaves as the basis for a drink. The first written record of tea dates back to 200 BC, when it was mentioned in a pharmacological treatise (Origin of tea). Tea is one of the most beverage drinks in the world. Now more than ever the demand for tea is expanding because people are becoming more health conscious. There are many types and flavors such as green tea, black tea, white or Jasmin tea. It is known for his various health helping qualities. For example green tea has some detoxifying qualities.

In the US, tea is becoming more present in the everyday life of consumers. “Domestic tea sales at restaurants, grocery stores and shops reached $15.7 billion in 2012; up nearly 32% from 2007, according to consumer goods research firm Packaged Facts. In the next two years, the market is expected to expand to $18 billion” (Hsu, 2013).

Although the tea was discovered in China, India has made a name in the tea industry being the country which produced and consumed tea the most in the world after China. “Country's tea production increased by 6.5 per cent to 1,200 million kg in 2013, against 1,126.33 million kg a year ago, a report by the Indian Tea Association (ITA) has said. Total production of tea in the northern part of the country (Assam and West Bengal) stood at 957.44 million kg in 2013 as against 886.95 million kg in the previous year, it said.” (Tea production rises 6.5 per cent in 2013: Indian Tea Association).

The Harmonized Commodity Description and Coding System classification of the product

Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations. Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirements. ( indian.gov)

In the Harmonized Tariffs Schedule, tea is classified in Section 2, Chapter 9, heading codes 0902.

Harmonized Tariff Schedule of the United States (2014)

Annotated for Statistical Reporting Purposes

II

9-2

Heading/ Stat. Unit Rates of Duty

Subheading Suf- Article Description of 1 2

fix Quantity General Special

0901 Coffee, whether or not roasted or decaffeinated; coffee

husks and skins; coffee substitutes containing coffee in

any proportion:

Coffee, not roasted:

0901.11.00 Not decaffeinated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free Free

Arabica:

15 Certified Organic. . . . . . . . . . . . . . . . . . . . . . . kg

25 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . kg

Other:

45 Certified Organic. . . . . . . . . . . . . . . . . . . . . . . kg

55 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . kg

0901.12.00 Decaffeinated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free Free

15 Certified Organic. . . . . . . . . . . . . . . . . . . . . . . . . . kg

25 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . kg

Coffee, roasted:

0901.21.00 Not decaffeinated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free Free

In retail containers weighing